Meritor announces it has found an agreement with Siemens to acquire its Commercial Vehicles Electric Propulsion business. Meritor was in turn acquired by Cummins earlier this year, will pay about 190 million euro in cash, adjusted for changes in working capital at closing.
It is worth mentioning that Siemens Commercial Vehicles (that has the e-drive ELFA in its portfolio, adopted by a batch of e-bus supplier as, among others, Iveco, Irizar e-mobility, VDL) is a separate business unit than Siemens Infrastructure, with the latter taking care of development and commercialization of charging infrastructures.
Siemens Commercial Vehicles acquired by Meritor
According to the official statements, the transaction is expected to close by calendar year-end, subject to regulatory approvals and customary closing conditions. Also, Cummins consented to and is supportive of Meritor entering into the agreement and completing its acquisition of the Siemens Commercial Vehicles business.
With approximately 200 employees across Germany, China and the United States, the Siemens Commercial Vehicles business (here our interview with CEO Mart Verschoor) develops, designs and produces high-performance electric drive systems. Product offerings include direct drive and transmission-based remote mount electric motors, inverters, software and related services which Meritor expects to be critical elements in the next generation of electric powertrains. These capabilities will enable Meritor to offer global customers a wider array of electrified product solutions across the commercial vehicle, transit, off-highway and specialty markets.
Siemens Commercial Vehicles to unveil e-axle
One year ago, in the above-mentioned interview, Verschoor announced: «We are working on our new NextGen motor platform with improved performance and other key developments such as the e-axle design. The motor will be available for testing at the end of this year followed by the e-axle. This will cement our spot as one of the top three Tier 1 e-propulsion system suppliers for the bus industry».
Statements from Meritor and Siemens AG
«The Siemens Commercial Vehicles business offers capabilities and technology that will enhance our ability to offer superior electric solutions to the global commercial vehicle market», said Chris Villavarayan, Meritor’s CEO and president. «As the urgency grows for zero carbon solutions, this highly talented and skilled team, and leading electric product portfolio, strengthens Meritor’s business as we move toward the anticipated acquisition by Cummins».
«Commercial Vehicles is another success story for value creation through our portfolio companies concept. We have turned it into a profitable business and now found the ideal new strategic owner», said Ralf P. Thomas, CFO of Siemens AG.